What opportunity does Budget 2018 holds for your investments

It’s been a couple of months since the budget of our country was introduced. Much of the concerned people on the budget were the investors for whom budget is a basic base of their everything. However, limited government finances are a reality as is the need to incentivise the right sort of financial products. So what does the Budget 2018 holds for everyone us? What opportunities does it hold in investments? We will discuss all the points in this blog.

The impact of introducing a new budget can be likened to have a butterfly effect. Just a small altercation in the budget can have a profound effect on the whole economy and can change the whole outcome of the entire nation. Thus making prudent investment decisions are important.

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So, let’s see how the budget can help you make prudent investment decisions.

1. Equity investment

Even though the stock markets are at all-time high, the budget can put a break in the works. Our Prime Minister Narendra Modi, who has a favourable image among investors, has previously bemoaned the problem of equity investors getting away by paying fewer taxes.

The areas of concern are:

Long-term capital gains tax: Currently, an investor is not taxed if s/he sells shares after a period of 12 months. But, that may change. The government may want to increase the amount of holding years, perhaps to two years.

Short-term capital gains tax: If an investor sells his shares before 12 months, s/he is taxed 15% on the amount earned. The tax rate can be increased in this case. So, keep an eye out for any changes. Doing so will make stock investments less lucrative.

But as mentioned earlier, the government is unlikely to do so in the last full budget. But then again, remain vigilant.

2. Tax-saving funds

A heavy research showed that there’s going to be rife about personal income tax being revised. The government is reportedly planning to hike the tax exemption limit from Rs 2.5 lakh to Rs 3 lakh. There are also reports of the tax deduction limit being raised from heretofore Rs 1.5 lakh.

The result: You can invest a lot more and accelerate your plans for reaching your life goals.

Therefore, tax-saving funds such as insurance, equity-linked savings scheme (ELSS), Public Provident Funds etc. can be an ideal to option to invest in. All this means that you will end up saving more money!

3. National Pension Scheme

Some economists feel that the country is hurtling towards a retirement crisis in coming 10 years or so. A survey was done by Reserve Bank of India at the end of 2017, less than one in four people plan for retirement.

To fix this problem, the government have looked to incentivise people in opting for retirement plans, most notably the government-run National Pension Scheme. The plan currently allows people to make an additional tax deduction of Rs 50,000.

However, the government may look to raise that limit further in order to solve the looming crisis. Raising the limit would result in more people investing in NPS.

The last word

Budgets may come and go, but the importance can't be ignored. Instead of following it and keeping a close insight on it as to which way the economy is heading might help you in your future. We, CEDRUS WEALTH PARTNERS are here to help you step by step for every investment plans. We will help you grasp of policies which are helpful for you to put where the mouth is with a certain sense of confidence.

Visit us at http://cedruswealth.com/

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